Business Services Quarterly Update - Deloitte …...59.2% stake in Havas (“Havas”) held by the Bolloré Group (“Balloré”), at a price of €9.25 ($11.34) per share. In accordance

Business Services Quarterly Update

Deloitte Corporate Finance LLC | www.investmentbanking.deloitte.com

Q4 2017

www.investmentbanking.deloitte.com | Page 2

Quarterly Update | Q4 2017 | Business Services

Deloitte Corporate Finance LLC (DCF) U.S. Business Services Leadership

Phil ColacoChief Executive OfficerCharlotte, [email protected]

James MillerManaging Director – Head of Business ServicesCharlotte, [email protected]

Deloitte1 Global Business Services Network

North AmericaLatin America

David Lam

Vancouver,

Canada

Jorge Brito

Quito, Ecuador

Reinaldo Grasson

Sao Paulo, Brazil

Marcos Bazan

Argentina

Europe

Richard Parsons

London,

United Kingdom

Katie Folwell-Davies

London,

United Kingdom

Byron Griffin

London,

United Kingdom

Olivier Magnin

Paris, France

Claire Deguerry

Paris, France

Albert Hannak

Wien, Austria

Charles Bédier

Paris, France

Fernando Baldellou

Madrid, Spain

Jose Chimeno

Lisbon, Portugal

Sascha Mauries

Dusseldorf,

Germany

Business Services

Consumer

Industrial Products

LSHC

TMT

DCF Deals Closed By Industry2 DCF Deals Closed by Transaction Type2 Leading M&A Platform3

Mid-Market Financial Advisor

RankNo. of

Deals

Deal Value

($mm)

PricewaterhouseCoopers 1 330 $56,799

KPMG 2 326 67,418

Deloitte 3 312 28,018

Ernst & Young LLP 4 308 29,021

Rothschild 5 296 210,768

Goldman Sachs & Co 6 292 727,294

JPMorgan 7 285 556,727

Morgan Stanley 8 246 576,999

Lazard 9 213 399,040

Credit Suisse 10 191 300,040

Sellside

Capital Raise

Buyside

Advisory

7.1%

8.9%

30.4%

25.0%

28.6%

71.2%

13.6%

5.1%

10.2%

1. Deloitte refers to Deloitte Touche Tohmatsu Limited, its network of member firms, and their related entities. 2. Represents transactions during FY 2017. For certain of these deals, DCF acted as a subcontractor to a Deloitte

member firm.3. Refers to Deloitte’s global M&A platform. Ranked by number of deals closed between January 1, 2017 and

December 11, 2017. Data accessed via MergerMarket. Accessed January 17, 2018.

Koichi Tamura

Tokyo, Japan

Asia

Ivan Wong

Hong Kong

Yu Dong Yuan

Shanghai, China

Sung Hoon Oh

Seoul, Korea

Antonio Solinas

Milan, Italy



Business Services M&A Sector Coverage

Demonstrated Transaction Experience

Who We Are

Deloitte Corporate Finance LLC is a leading global middle market M&A adviser. The firm’s professionals have extensive knowledge in the Business Services space and use their experience to help clients maximize value.

In This Update

• Business Services Trends

• Economic Outlook

• Industry Analysis

• Select M&A Transactions

Advertising and Marketing

Staffing and Human Resources

Business Process Outsourcing

Consulting

Education and Training

Transaction Processing

6

9

12

15

18

21

Contacts

Phil [email protected]+1 704 333 0533

James MillerManaging [email protected]+1 704 731 8230

The undersigned acted as financial advisor to First Call

Resolution, LLC.

has completed a debt recapitalization with

▪ First Call Resolution, LLC (“FCR”) is a leading domestic provider of outsourcedcall center and business process solutions. FCR handles complex inbound trafficrequiring advanced technical support and specializes in serving customers inregulated industries (e.g. SOC 2 and HIPAA compliant). FCR is based inEugene, Oregon, and employs over 1,100 staff in contact centers throughoutOregon and Montana.

▪ DCF added significant value to the transaction by:

‒ Assisting in reviewing multiple transaction alternatives and coordinating the due diligence process.

‒ Consulting with management to determine the optimal transaction structure and advising FCR in their negotiation of optimal terms to maximize value for its shareholders.

Table of Contents

Deloitte Corporate Finance LLC

55.0

65.0

75.0

85.0

95.0

105.0

115.0

125.0

135.0

48.0

50.0

52.0

54.0

56.0

58.0

60.0

62.0

64.0

Con

su

mer C

on

fid

en

ce

IS

M N

on

-Man

ufa

ctu

rin

g

ISM Non-Manufacturing Consumer Confidence



$ i

n B

illi

on

s

Yo

Y P

ercen

t C

han

ge

Macroeconomic Outlook

U.S. Treasury Yield Curve2

(Nominal vs. Real)U.S. Gross Domestic Product1

U.S. Unemployment Rate3 ISM Non-Manufacturing Indexand Consumer Confidence Index4

*An ISM Non-Manufacturing Index value above 50 signals economic expansion.

U.S. Corporate Profits5 Global Segmentation of Business Process Outsourcing6

Business Services Sector Outlook

200

250

300

350

400

450

500

550

600

4.0%

6.0%

8.0%

10.0%Job

less C

laim

s (

Th

ou

san

ds)

% U

nem

plo

yed

Initial Jobless Claims Unemployment Rate (%)

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

In

terest

Rate

Real Yield (%) Nominal Yield (%)

$0.0

$5.0

$10.0

$15.0

$20.0

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

$ in

Tril

lion

s

YoY

Percen

t C

han

ge

GDP ($ in Trillions) YoY % Growth (Adj. for Inflation)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$ billion % Change

59.2%26.2%

7.8%

6.9%

North America EMEA Latin America Asia/Pacific

1. U.S. Bureau of Economic Analysis. Accessed January 12, 2018. Data as of December 31, 2017.2. U.S. Department of the Treasury. Accessed January 12, 2018. Data as of December 31, 2017.3. U.S. Bureau of Labor Statistics. Accessed January 12, 2018. Data as of December 31, 2017.4. S&P Capital IQ. Accessed January 12, 2018. Data as of December 31, 2017.5. IBIS World. Accessed January 12, 2018. Data as of December 2017.6. Gartner. Accessed January 23, 2017. Data as of December 31, 2016.

Business Services Sector Breakdown and Trading Statistics1

Public Comparables Three-Year Stock Market Performance2



-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Dec-1

4

Mar-

15

Jun-1

5

Sep-1

5

Dec-1

5

Mar-

16

Jun-1

6

Sep-1

6

Dec-1

6

Mar-

17

Jun-1

7

Sep-1

7

Dec-1

7

S&P 500 Index NASDAQ Composite Index Business Services Index

NASDAQ Composite Index 43.6%

S&P 500 Index 27.9%

Business Services Index 35.7%

1. S&P Capital IQ. Accessed January 7, 2018. Data as of January 7, 2018.2. S&P Capital IQ. Accessed January 7, 2018. Data as of January 7, 2018.

Last Twelve Months NTM

SectorNumber of

Companies

% of 52

Week High

Median

Revenue

CAGR (3 Yr)

Median

LTM

EBITDA

Median

EBITDA

Margin

Median

Enterprise

Value ($)

EV/

Revenue

EV/

EBITDA

EV/

EBITDA

($ in Millions)

Advertising and Marketing 9 83.5 % 6.9 % $508.7 14.2 % $4,674.0 1.3 x 9.0 x 8.1 x

Business Process Outsourcing 11 97.1 6.3 450.3 14.0 7,209.1 2.6 16.0 11.7

Consulting 10 96.4 4.7 105.0 10.1 1,252.0 1.2 12.2 10.6

Education & Training 13 90.3 (1.4) 50.6 15.8 475.2 1.5 11.6 8.5

Staffing and Human Resources 15 98.0 10.2 155.3 4.6 2,298.9 0.5 11.5 9.6

Transaction Processing 11 97.6 11.2 733.1 24.7 11,895.3 3.9 17.4 14.1

Comparable Public Companies 69 97.1 % 6.5 % $299.1 12.5 % $2,374.5 1.4 x 12.4 x 10.4 x



Advertising and MarketingSector Update | Q4 2017



Advertising and Marketing

Select Advertising and Marketing M&A Transactions3

Transaction in Focus2

July 03, 2017 – Vivendi (“Vivendi”), an integrated media and content group, acquired the 59.2% stake in Havas (“Havas”) held by the Bolloré Group (“Balloré”), at a price of €9.25 ($11.34) per share. In accordance with market regulations, Vivendi will launch a simplified tender offer on the remaining Havas shares, which offer is not aimed at a delisting of the Havas shares.

Advertising and Marketing Trend

Leveraging B2C Content Marketing Measurement Systems1

Machine learning, which is a type of artificial intelligence (AI) that allows software applications to improve accuracy when predicting outcomes, is becoming an increasingly important tool for marketers to be able quantify and then track key performance indicators in order to optimize the effectiveness of a content marketing initiative. Forrester Research recommends marketers structure measurement and reporting according to operational roles and investigating digital full attribution to transparently link activities to outcomes. In 2018, marketers will continue to design marketing campaigns that apply machine learning to purchase path optimization.

($ in Millions)

Close Date Target/Acquiror Target Business Description

Enterprise

Value

("EV")

Havas SA

Vivendi SA

Avention, Inc.

The Dun & Bradstreet Corporation

NeuStar, Inc.

Creston plc

RedWhiteBlue Champion Ltd.

Merkle Inc.

Dentsu Aegis Network Ltd.

GIC Special Investments Pte. Ltd.; Golden Gate

Private Equity, Inc

September-16 Provides customer relationship management (CRM)

solutions.

1,395.2 3.2 21.1

December-16 Provides a range of marketing solutions in the

United Kingdom and internationally.

89.7 0.7 6.5

August-17 Offers marketing, activation, and media intelligence services

that provide real-time information worldwide.

2,885.9 2.5 6.9

January-17 Offers sales, marketing, and business lead generation and

qualification tools.

150.0 2.5 N/A

July-17 Provides advertising, media, and digital services worldwide. $4,309.0 1.7 x 11.4

EV/

Revenue

EV/

EBITDA

x

1. “Measurement Powers Content Marketing Success.” Forrester Research. January 3, 2018.2. “Vivendi Acquires the Ballore Group’s Majority Stake in Havas.” Vivendi Press Release. July 3, 2017.3. S&P Capital IQ. Accessed January 7, 2018. Data as of January 7, 2018.

Advertising and Marketing Public Comparables1



4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

12.0x

13.0x

14.0x

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Advertising and Marketing S&P 500 Index

Advertising and Marketing Historical EV/EBITDA Multiples2

LTM

Company (Ticker)

% of 52

Week High

LTM

Revenue

LTM

EBITDA

EBITDA

Margin

Enterprise

Value

("EV")($ in Millions)

Aimia Inc. (TSX:AIM) 41.0 % $1,709.3 (3.7) % $99.4 5.8 % $460.6 0.3 x 4.6 x 2.3 x

Cheil Worldwide Inc. (KOSE:A030000) 89.4 2,927.8 7.4 175.6 6.0 1,638.0 0.6 9.3 8.1

Hakuhodo DY Holdings Inc (TSE:2433) 95.5 11,481.5 4.7 508.7 4.4 4,363.5 0.4 8.6 8.1

MDC Partners Inc. (NasdaqGS:MDCA) 77.1 1,501.5 10.8 168.9 11.3 1,659.6 1.1 9.8 7.7

Omnicom Group Inc. (NYSE:OMC) 85.0 15,338.9 0.3 2,326.5 15.2 20,986.4 1.4 9.0 8.7

Publicis Groupe S.A. (ENXTPA:PUB) 80.9 11,207.1 12.2 1,969.2 17.6 17,727.6 1.6 9.0 8.4

The Interpublic Group of Companies, Inc. (NYSE:IPG) 83.5 7,805.9 1.6 1,105.2 14.2 9,998.0 1.3 9.0 8.0

UBM plc (LSE:UBM) 93.5 1,209.6 6.9 329.9 27.3 4,674.0 3.9 14.2 11.4

WPP plc (LSE:WPP) 68.7 19,813.5 11.0 3,569.6 18.0 29,350.7 1.5 8.2 8.3

Median 83.5 % $7,805.9 6.9 % $508.7 14.2 % $4,674.0 1.3 x 9.0 x 8.1 x

Mean 79.4 % 5.7 % 13.3 % 1.3 x 9.1 x 7.9 x

NTM

Revenue

CAGR (3 Yr)

EV/

Revenue

EV/

EBITDA

EV/

EBITDA


Return to Table of Contents



Business Process OutsourcingSector Update | Q4 2017



Business Process Outsourcing

Select Business Process Outsourcing M&A Transactions3


December 15, 2017 - Through a subsidiary company, Assystem Technologies (“Assystem”) has announced a takeover offer at approximately £281.3 million ($338.6 million) to acquire SQS Software Quality Systems AG (“SQS”), a benchmark player in systems and software testing, quality assurance and digital transformation. The proposed combination of Assystem and SQS is expected to create an enlarged Technologies group with approximately 14,000 employees with combined revenues of approximately €1 billion ($1.2 billion).

Business Process Outsourcing Trend

Artificial Intelligence’s Impact on Business Process Outsourcing1

Markets are becoming increasingly dynamic and many companies with rigid business processes are now finding themselves at a distinct disadvantage. To become more agile, many companies have been migrating from rules based systems to more flexible, outcome-driven approaches. Additionally, the use of AI technologies — a combination of IT systems, tools, and methods that enables machines to sense, comprehend, act, and learn — is fueling this transition phase. The traditional approach of business process outsourcing, being driven by service level agreements, is changing and companies may have to rethink how to structure relationships. Many companies will continue to move toward outcome-based approaches with agreements based on the business value created by the work.

($ in Millions)


Enterprise

Value

("EV")

SQS Software Quality Systems AG

Assystem Technologies SA

PAREXEL International Corporation

Pamplona Capital Management LLP

Kofax Ltd.

Thoma Bravo, LLC

September-17 Operates as a biopharmaceutical outsourcing services

company worldwide.

5,007.4 2.4 14.6

July-17 Kofax Ltd. provides capture and business process

management (BPM) software and related maintenance and

professional services.

1,350.0 0.3 N/A

EV/

Revenue

EV/

EBITDA

Pending Provides end-to-end software and business process quality

solutions.

$418.0 1.1 x 13.7 x

1. “Using AI to Succeed in The New Business Process Era.” Accenture. January 3, 2018.2. “SQS AG agrees £281.3 million takeover offer by Assystem Technologies.” SQS Press Release. December 15, 2017.3. S&P Capital IQ. Accessed January 7, 2018. Data as of January 7, 2018.

Business Process Outsourcing Public Comparables1



Business Process Outsourcing Historical EV/EBITDA Multiples2

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Business Process Outsourcing S&P 500 Index

LTM

Company (Ticker)

% of 52

Week High

LTM

Revenue

LTM

EBITDA

EBITDA

Margin

Enterprise

Value


Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) 96.7 % $14,444.0 13.5 % $2,876.0 19.9 % $39,749.7 2.8 x 13.8 x 11.7 x

Computershare Limited (ASX:CPU) 95.8 2,105.8 1.5 491.3 23.3 8,094.3 3.8 16.5 13.5

Convergys Corporation (NYSE:CVG) 85.1 2,860.8 3.0 356.8 12.5 2,197.1 0.8 6.2 6.4

DXC Technology Company (NYSE:DXC) 98.4 15,882.0 13.7 2,196.0 13.8 35,058.8 2.2 16.0 7.1

ExlService Holdings, Inc. (NasdaqGS:EXLS) 98.1 741.7 15.0 103.5 14.0 1,905.9 2.6 18.4 13.3

Genpact Limited (NYSE:G) 98.7 2,684.3 6.3 450.3 16.8 7,209.1 2.7 16.0 14.8

Sykes Enterprises, Incorporated (NasdaqGS:SYKE) 91.0 1,555.9 5.8 173.6 11.2 1,274.9 0.8 7.3 7.1

Tata Consultancy Services Limited (NSEI:TCS) 98.9 18,816.3 9.3 4,926.0 26.2 78,712.0 4.2 16.0 14.7

TTEC Holdings, Inc. (NasdaqGS:TTEC) 91.4 1,395.7 4.5 171.0 12.3 2,017.2 1.4 11.8 9.4

Wipro Limited (BSE:507685) 98.2 8,378.6 6.2 1,692.1 20.2 20,683.3 2.5 12.2 11.4

WNS (Holdings) Limited (NYSE:WNS) 97.1 671.5 8.7 85.6 12.8 1,991.2 3.0 23.3 12.5

Median 97.1 % $2,684.3 6.3 % $450.3 14.0 % $7,209.1 2.6 x 16.0 x 11.7 x

Mean 95.4 % 7.9 % 16.6 % 2.4 x 14.3 x 11.1 x

Revenue

CAGR (3 Yr)

NTM

EV/

EBITDA

EV/

Revenue

EV/

EBITDA





ConsultingSector Update | Q4 2017



Consulting

Select Consulting M&A Transactions3


November 1, 2017 - Duff & Phelps Corporation (“Duff & Phelps”), a premier global valuation and corporate finance advisor, and London based private equity firm Permira Advisers Ltd. (“Permira”) announced that a company backed by the Permira funds has agreed to acquire Duff & Phelps for $1.75 billion. Selling equity holders include The Carlyle Group, Neuberger Berman, the University of California’s Office of the Chief Investment Officer of the Regents and Pictet & Cie.

Consulting Trend

U.S. Expansion in Financial Regulation and Healthcare Expected to Drive Growth in 20181

Financial institutions, most of which are located in the United States, are expected to represent the consulting industry's largest growth market over the next five years due to the continued implementation of new financial regulations. Banks and other financial institutions are expected to increase investment in consultants and other expert services to ensure regulatory compliance and better manage the wide range of operations that exist under their brand names. Additionally, the healthcare market is expected to experience strong growth over the next five years as uncertainty of the future of the Patient Protection and Affordable Care Act causes healthcare companies to seek out consultants to help plan for different potential outcomes.

1. “Global Management Consulting Industry Outlook.” IBISWorld. January 3, 2018.2. “Duff & Phelps to be Acquired by the Permira Funds for $1.75 Billion.” BusinessWire. November 1, 2017.3. S&P Capital IQ. Accessed January 7, 2018. Data as of January 7, 2018.

($ in Millions)


Enterprise

Value

("EV")Duff & Phelps Corporation

Permira Avisers Ltd.

The CJS Solutions Group LLC

Tech Mahindra (Americas), Inc.

CEB Inc.

Gartner, Inc.

Everett Spinco, Inc.

EV/

Revenue

EV/

EBITDA

November-17 Provides legal management, consulting, valuation,

alternative asset management, compliance and regulatory

consulting, and other business services.

$1,750.0 N/A x N/A x

May-17 Offers healthcare technology consulting services. 220.0 1.9 N/A

0.5 5.1

April-17 Operates as a practice insight and technology company in

the United States, Europe, and internationally.

3,680.7 3.9

Computer Sciences Corporation

18.4

March-17 Provides technology consulting, outsourcing, and support

services worldwide.

8,642.0

Consulting Public Comparables1



Consulting Historical EV/EBITDA Multiples2

4.0x

5.0x

6.0x

7.0x

8.0x

9.0x

10.0x

11.0x

12.0x

13.0x

14.0x


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Consulting S&P 500 Index

LTM

Company (Ticker)

% of 52

Week High

LTM

Revenue

LTM

EBITDA

EBITDA

Margin

Enterprise

Value


Accenture plc (NYSE:ACN) 99.8 % $35,857.9 5.5 % $5,853.8 16.3 % $95,252.2 2.7 x 16.3 x 14.2 x

Booz Allen Hamilton Holding Corporation (NYSE:BAH) 98.9 6,022.4 4.4 568.9 9.4 7,240.1 1.2 12.7 11.9

CBIZ, Inc. (NYSE:CBZ) 95.9 839.0 6.4 89.7 10.7 1,102.6 1.3 12.3 10.3

CRA International, Inc. (NasdaqGS:CRAI) 99.9 352.6 5.1 30.7 8.7 374.4 1.1 12.2 0.0

Exponent, Inc. (NasdaqGS:EXPO) 93.6 319.7 3.5 75.6 23.6 1,697.9 5.3 22.5 18.8

FTI Consulting, Inc. (NYSE:FCN) 96.9 1,781.9 0.7 159.6 9.0 1,926.8 1.1 12.1 9.9

Huron Consulting Group Inc. (NasdaqGS:HURN) 87.4 724.8 (4.4) 96.7 13.3 1,251.4 1.7 12.9 10.9

ICF International, Inc. (NasdaqGS:ICFI) 97.6 1,197.5 6.1 113.4 9.5 1,252.7 1.0 11.1 10.2

Navigant Consulting, Inc. (NYSE:NCI) 77.1 948.6 8.4 128.1 13.5 1,071.9 1.1 8.4 7.3

Resources Connection, Inc. (NasdaqGS:RECN) 95.9 590.4 0.3 46.4 7.9 520.4 0.9 11.2 11.1

Median 96.4 % $893.8 4.7 % $105.0 10.1 % $1,252.0 1.2 x 12.2 x 10.6 x

Mean 94.3 % 3.6 % 12.2 % 1.7 x 13.2 x 10.5 x

NTM

Revenue

CAGR (3 Yr)

EV/

Revenue

EV/

EBITDA

EV/

EBITDA





Education and TrainingSector Update | Q4 2017



Education & Training

Select Education and Training M&A Transactions3


November 17, 2017 – OptumInsight, Inc. (“Optum”), the information and health-services division of UnitedHealth Group Inc., announced it will acquire The Advisory Board Co.’s (“Advisory Board”) health care business for roughly $1.3 billion, according to a release. The deal is part of a two-step sale of The Advisory Board: private-equity firm Vista Equity Partners will acquire The Advisory Board’s education business for roughly $2.6 billion.

Education & Training Trend

Strategic Onboarding for New Hires Can Help Drive Results1

Organizations are starting to look at the new hire onboarding process as a complete experience. In fact, onboarding should begin from the moment the candidate says, “Yes.” That means personalizing the offer letter and pre-boarding experience and creating more than a task checklist about workspaces, computers, and paperwork. Strategic onboarding rapidly engages enthusiastic new hires into the life of the organization and keeps them continuously engaged with every career move or transition. Gallup’s State of the American Workforce 2017 says: “Engaged employees are more present and productive; they are more attuned to the needs of customers; and they are more observant of processes, standards, and systems. When taken together, the behaviors of highly engaged business units result in 21% greater profitability.”

($ in Millions)


Enterprise

Value

("EV")

The Advisory Board Company

OptumInsight, Inc.

Nord Anglia Education, Inc.

Jhana Education Inc.

Emantras Inc.

Apollo Education Group, Inc. 2.2 February-17 Apollo Education Group, Inc. provides private education

services in the United States and internationally.

588.6 0.3

N/A N/A

GP Strategies Corporation

April-17 Provides training, education, and designs work flow

solutions.

N/A

24.8

July-17 Develops and offers bite-sized, online learning content for

leaders and managers.

10.7 N/A N/A

September-17 Operates premium international schools. 4,349.0 4.9

Franklin Covey Co.

EV/

Revenue

EV/

EBITDA

November-17 Provides leading practices research and insight, technology,

consulting and management, and data-enabled services

internationally.

$1,300.0 1.6 x 6.3 x

Canada Pension Plan Investment Board; Baring

Private Equity Asia

Apollo Global Management, LLC; Najafi Companies;

Apollo Investment Fund VIII, L.P.; The Vistria

Group, LLC

1. “Industry Insight: Strategic Onboarding – Help New Hires Belong and Deliver Results.” Training Magazine. January 3, 2018. 2. “The Advisory Board Company Stockholders Approve Merger Agreement with Optum.” Optum Press Release. November 15, 2017.3. S&P Capital IQ. Accessed January 7, 2018. Data as of January 7, 2018.

Education & Training Public Comparables1



Education and Training Historical EV/EBITDA Multiples2

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Education and Training S&P 500 Index

LTM

Company (Ticker)

% of 52

Week High

LTM

Revenue

LTM

EBITDA

EBITDA

Margin

Enterprise

Value


Education

American Public Education, Inc. (NasdaqGS:APEI) 92.5 % $299.8 (4.3) % $54.1 18.0 % $246.1 0.8 x 4.6 x 4.9 x

Bridgepoint Education, Inc. (NYSE:BPI) 54.4 493.0 (9.0) 30.4 6.2 59.9 0.1 2.0 2.3

Capella Education Company (NasdaqGS:CPLA) 81.0 439.7 1.6 69.4 15.8 766.7 1.7 11.0 8.5

Career Education Corporation (NasdaqGS:CECO) 89.8 608.6 (1.1) 50.6 8.3 696.3 1.1 13.8 7.1

Adtalem Global Education Inc. (NYSE:ATGE) 99.7 1,780.9 (2.7) 310.0 17.4 2,673.6 1.5 8.6 8.5

Grand Canyon Education, Inc. (NasdaqGS:LOPE) 96.3 947.4 12.6 321.7 34.0 4,253.5 4.5 13.2 11.7

Lincoln Educational Services Corporation (NasdaqGS:LINC) 56.0 178.4 (18.1) 4.2 2.4 61.2 0.3 14.5 4.7

Strayer Education, Inc. (NasdaqGS:STRA) 91.8 455.4 0.1 77.5 17.0 839.3 1.8 10.8 9.9

Universal Technical Institute, Inc. (NYSE:UTI) 67.4 324.3 (5.0) 14.4 4.4 79.3 0.2 5.5 7.9

Median 89.8 % $455.4 (2.7) % $54.1 15.8 % $696.3 1.1 x 10.8 x 7.9 x

Mean 81.0 % (2.9) % 13.7 % 1.4 x 9.3 x 7.3 x

NTM

Revenue

CAGR (3 Yr)

EV/

Revenue

EV/

EBITDA

EV/

EBITDA

LTM

Company (Ticker)

% of 52

Week High

LTM

Revenue

LTM

EBITDA

EBITDA

Margin

Enterprise

Value


Training

Franklin Covey Co. (NYSE:FC) 99.3 % $193.4 (2.6) % $6.2 3.2 % $463.3 2.4 x 75.0 x 30.5 x

GP Strategies Corporation (NYSE:GPX) 82.9 505.0 0.7 35.9 7.1 475.2 0.9 13.3 10.7

John Wiley & Sons, Inc. (NYSE:JW.A) 96.9 1,751.8 (1.4) 315.3 18.0 4,189.3 2.4 13.3 10.4

Wilmington plc (LSE:WIL) 90.3 156.3 10.2 30.8 19.7 358.2 2.3 11.6 9.1

Median 93.6 % $349.2 (0.3) % $33.3 12.6 % $469.2 2.3 x 13.3 x 10.6 x

Mean 92.4 % 1.7 % 12.0 % 2.0 x 28.3 x 15.2 x

NTM

Revenue

CAGR (3 Yr)

EV/

Revenue

EV/

EBITDA

EV/

EBITDA





Staffing and Human ResourcesSector Update | Q4 2017

Staffing and Human Resources Trend

Human Resources enters the Digital Age1

“Robotics, AI, sensors and cognitive computing have gone mainstream, along with the open talent economy. Companies can no longer consider their workforce to be only the employees on their balance sheet, but must include freelancers, ‘gig economy’ workers, and crowds. These on- and off-balance-sheet workers are being augmented with machines and software. Together, these trends will result in the redesign of almost every job, as well as a new way of thinking about workforce planning and the nature of work.”

- Josh Bersin, Rewriting the Rules for the Digital Age: 2017 Deloitte Global Human Capital Trends



Staffing and Human Resources

Select Staffing and Human Resources M&A Transactions3


June 19, 2017 - Certain affiliates of investment funds managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”), the Ontario Teachers’ Pension Plan Board (“Ontario Teachers’”) and CareerBuilder, LLC (“CareerBuilder”) announced today that they have entered into a definitive agreement, pursuant to which an investor group led by Apollo along with Ontario Teachers’ will acquire a majority of the outstanding equity interests in CareerBuilder.

Human Capital Research & Insights

($ in Millions)


Enterprise

Value

("EV")

CareerBuilder, LLC

Advantage RN, LLC

Cross Country Healthcare, Inc.

Aon plc, Benefits Administration and HR

Business Process Outsourcing Platform

The Blackstone Group L.P.

Halogen Software Inc.

Saba Software, Inc.; 6883621 Canada Inc.

SNI Companies Inc.

GEE Group, Inc.

27.5

April-17 Provides recruitment and staffing services in the United

States.

86.0 0.8 N/A

May-17 Develops, markets, and sells software-as-a-service based

talent management software solutions worldwide.

174.9 2.4

8.7

May-17 Provides cloud-based HR management services. 4,800.0 2.1 12.1

July-17 Provides staffing services for nurse and medical professional

travel assignments, primarily to hospitals and medical

facilities in the United States.

86.8 0.9

EV/

Revenue

EV/

EBITDA

July-17 Provides HR software-as-a-service solutions that connect job

seekers and employers globally.

$627.5 0.9 x N/A x

Apollo Global Management, LLC; Ontario Teachers'

Pension Plan Board

1. Rewriting the Rules for the Digital Age: 2017 Deloitte Global Human Capital Trend. December, 2017. 2. “Apollo Global Management-affiliated Funds and Ontario Teachers’ Agree to Acquire a Controlling Interest in CareerBuilder.”

Apollo Press Release. June 19, 2017.3. S&P Capital IQ. Accessed January 7, 2018. Data as of January 7, 2018.

Staffing and Human Resources Public Comparables1



Staffing and Human Resources Historical EV/EBITDA Multiples2

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Staffing and Human Resources S&P 500 Index

LTM

Company (Ticker)

% of 52

Week High

LTM

Revenue

LTM

EBITDA

EBITDA

Margin

Enterprise

Value


Adecco Group AG (SWX:ADEN) 98.4 % $27,741.4 5.8 % $1,443.1 5.2 % $14,985.5 0.5 x 10.4 x 9.6 x

Barrett Business Services, Inc. (NasdaqGS:BBSI) 93.1 896.8 14.0 31.8 3.5 439.5 0.5 13.8 10.2

Hays plc (LSE:HAS) 98.2 6,598.9 11.4 299.1 4.5 3,706.1 0.6 12.4 10.5

Impellam Group PLC (AIM:IPEL) 72.0 2,812.0 20.8 61.6 2.2 523.6 0.2 8.5 6.6

Insperity, Inc. (NYSE:NSP) 96.9 3,202.8 11.4 135.2 4.2 2,298.9 0.7 17.0 12.1

Kelly Services, Inc. (NasdaqGS:KELY.A) 91.9 5,256.5 (1.6) 98.9 1.9 1,089.2 0.2 11.0 9.1

Kforce Inc. (NasdaqGS:KFRC) 98.5 1,341.4 4.3 72.7 5.4 807.2 0.6 11.1 8.8

Korn/Ferry International (NYSE:KFY) 96.7 1,632.3 17.7 201.6 12.4 2,374.5 1.5 11.8 9.1

ManpowerGroup Inc. (NYSE:MAN) 98.4 20,352.9 (0.9) 878.3 4.3 8,954.7 0.4 10.2 9.5

On Assignment, Inc. (NYSE:ASGN) 98.0 2,567.8 14.6 268.6 10.5 4,061.8 1.6 15.1 12.3

PageGroup plc (LSE:PAGE) 99.2 1,679.8 8.4 155.3 9.2 2,123.8 1.3 13.7 11.1

Randstad Holding NV (ENXTAM:RAND) 96.3 26,970.9 10.2 1,178.6 4.4 14,098.6 0.5 12.0 9.7

Robert Half International Inc. (NYSE:RHI) 98.1 5,185.6 4.4 577.4 11.1 6,622.0 1.3 11.5 10.9

SThree plc (LSE:STHR) 99.5 1,338.9 14.9 61.8 4.6 622.2 0.5 10.1 9.0

TrueBlue, Inc. (NYSE:TBI) 95.1 2,574.1 10.0 135.7 5.3 1,130.4 0.4 8.3 8.8

Median 98.0 % $2,812.0 10.2 % $155.3 4.6 % $2,298.9 0.5 x 11.5 x 9.6 x

Mean 95.4 % 9.7 % 5.9 % 0.7 x 11.8 x 9.8 x

NTM

Revenue

CAGR (3 Yr)

EV/

Revenue

EV/

EBITDA

EV/

EBITDA





Transaction ProcessingSector Update | Q4 2017

Transaction Processing Trend

How Blockchain Technology Could Impact the Transaction Processing Industry1

Many industry experts believe the underlying technology that makes Bitcoin possible — known as “blockchain” — could have a profound influence on the future of global finance. In its most basic form, a blockchain is a computer file that serves as a digital ledger, recording transactions and acting as an authoritative record of past transactions. Industry incumbents are currently experimenting with blockchain, and many new entrants are leveraging the technology to garner market share in the transaction processing industry. The use of a distributed ledger system, such as a blockchain, could unlock advantages by automating processes and thus reducing compliance errors. Subject to the provisions of data protection regulation, the data within it could even be analyzed by transaction processing firms to spot irregularities or foul play – directly targeting criminal activity.



Transaction Processing

Select Transaction Processing M&A Transactions3


October 26, 2017 - Fintrax Group (“Fintrax”), a leader in multi-currency digital payment processing for tourists, and Planet Payment, Inc. (“Planet Payment”), a leading provider of international and multi-currency processing services, announced that they have entered into a definitive agreement under which Fintrax will acquire Planet Payment for $4.50 per share in cash.

($ in Millions)


Enterprise

Value

("EV")

Worldpay Group plc

Vantiv, Inc.

Paysafe Group Plc

Planet Payment, Inc.

Fintrax Group Holdings Ltd.

CardConnect Corporation

First Data Corporation

DH Corporation

26.6

June-17 Provides payments, lending, and financial solutions to banks,

specialty lenders, credit unions, governments, and

corporations worldwide.

3,458.7 2.8 14.6

July-17 Provides payment processing solutions to small and medium

business merchants and enterprise customers in the

United States.

716.3 1.2

Misys Limited (nka:Finastra Group Holdings Ltd.)

15.1

December-17 Provides international payment and transaction processing,

and multi-currency processing services globally.

250.4 4.7 18.9

Pending Provides online processing of direct debit, credit card, and

alternative payment services to businesses internationally.

4,013.7 3.8

CVC Capital Partners Ltd.; The Blackstone Group

L.P.

EV/

Revenue

EV/

EBITDA

Pending Provides payments processing technology and solutions for

merchant customers.

$11,527.3 7.5 x 19.7 x

1. “Blockchain. Enigma. Paradox. Opportunity.” Deloitte, January 3, 2018.2. “Fintrax Group to Acquire Planet Payment.” Planet Payment Press Release. October 26, 2017.3. S&P Capital IQ. Accessed January 7, 2018. Data as of January 7, 2018.

Transaction Processing Public Comparables1



Transaction Processing Historical EV/EBITDA Multiples2

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x


2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Transaction Processing S&P 500 Index

LTM

Company (Ticker)

% of 52

Week High

LTM

Revenue

Revenue

CAGR (3

Yr)

LTM

EBITDA

EBITDA

Margin

Enterprise

Value

("EV")

($ in Millions)

Broadridge Financial Solutions, Inc. (NYSE:BR) 99.6 % $4,172.1 17.5 % $733.1 17.6 % $11,895.3 2.9 x 16.2 x 14.1 x

Cardtronics plc (NasdaqGS:CATM) 39.0 1,454.5 12.8 319.2 21.9 1,880.1 1.3 5.9 N/A

Euronet Worldwide, Inc. (NasdaqGS:EEFT) 94.2 2,167.6 11.2 376.4 17.4 4,697.3 2.2 12.5 10.2

EVERTEC, Inc. (NYSE:EVTC) 72.0 409.4 4.2 147.6 36.1 1,614.9 3.9 10.9 9.8

Global Payments Inc. (NYSE:GPN) 97.6 4,276.5 0.0 1,191.5 27.9 20,788.7 4.9 17.4 15.6

Jack Henry & Associates, Inc. (NasdaqGS:JKHY) 99.9 1,446.0 6.5 447.9 31.0 9,371.1 6.5 20.9 17.6

Mastercard Incorporated (NYSE:MA) 99.9 11,941.0 9.3 6,901.0 57.8 168,426.2 14.1 24.4 21.0

The Western Union Company (NYSE:WU) 95.2 5,457.7 (1.0) 1,348.2 24.7 12,068.8 2.2 9.0 9.0

Total System Services, Inc. (NYSE:TSS) 99.7 4,786.9 26.0 986.4 20.6 17,668.2 3.7 17.9 14.1

Vantiv, Inc. (NYSE:VNTV) 96.7 3,915.9 17.7 914.0 23.3 17,010.6 4.3 18.6 10.2

WEX Inc. (NYSE:WEX) 98.8 1,210.1 15.4 393.8 32.5 8,408.0 6.9 21.4 15.2

Median 97.6 % $3,915.9 11.2 % $733.1 24.7 % $11,895.3 3.9 x 17.4 x 14.1 x

Mean 90.2 % 10.9 % 28.3 % 4.8 x 15.9 x 13.7 x

NTM

EV/

EBITDA

EV/

Revenue

EV/

EBITDA



Deloitte Corporate Finance LLC (“DCF”)

Phil [email protected]+1 704 333 0533

Jonathan [email protected]+1 214 840 1779

Keith [email protected]+1 404 631 3455

Tracy [email protected]+1 213 996 4939

Eric [email protected]+1 704 333 0518

Tony Blanchard [email protected]+1 313 396 3738

Doug [email protected]+1 704 731 7219

Hector [email protected]+1 404 631 3015

Nick [email protected]+1 212 436 3273

John [email protected]+1 704 333 0574

Lorin [email protected]+1 704 333 0591

Will [email protected]+1 312 486 4458

Mike [email protected]+1 213 996 4901

Simon Gisby [email protected]+1 212 436 2495

Bill [email protected]+1 980 312 3613

Jamie [email protected]+1 214 840 7057

Matt [email protected]+1 213 892 6053

James [email protected]+1 704 731 8230

Byron [email protected]+1 469 417 2462

Jonathan Ohm [email protected]+1 212 436 2287

Lou [email protected]+1 704 731 7202

Jason [email protected]+1 704 333 0136

Matt [email protected]+1 704 731 7186

Ron [email protected]+1 404 631 3710

Justin [email protected]+1 404 942 6960

Tom [email protected]+1 214 840 7014

Vijay [email protected]+1 212 313 1723

Charlie [email protected]+1 704 731 7201

DCF provides deal execution and lead financial advisory services to large corporate, middle market, private equity and venture capital firms. DCF and its affiliates maintain a presence in key U.S. financial centers.

For additional information or to find out more about how DCF can assist the deal initiation and execution process, please contact one of our DCF Managing Directors:

Brad HestonSenior Vice President [email protected]+1 404 631 3839

Deloitte Corporate Finance Business Development Group:

www.investmentbanking.deloitte.com

John LindseySenior Vice [email protected]+1 469 417 2147

Bill PucciSenior Vice President [email protected]+1 973 602 4542



This newsletter is a periodic compilation of certain completed and announced merger and acquisition activity. Information contained in this newsletter should not be construed as a recommendation to sell or a recommendation to buy any security. Anyreference to or omission of any reference to any company in this newsletter shall not be construed as a recommendation to sell, buy or take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security or company based on this newsletter. This newsletter is published solely for the general information of clients andfriends of Deloitte Corporate Finance LLC. It does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions, including those involving early stage companies, give rise to substantial risk and are not suitable for all investors. This newsletter is based on information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known risks, uncertainties and other factors that may cause actual results to vary materially. We are under no obligation to update the information contained in this newsletter. We and our affiliates and related entities, partners, principals, directors, and employees, including persons involved in the preparation or issuance of this newsletter, may from time to time have “long” and “short” positions in, and buy or sell, the securities, or derivatives (including options) thereof, of companies mentioned herein. The companies mentioned in this newsletter may be: (i) investment banking clients of Deloitte Corporate Finance LLC; or (ii) clients of Deloitte Financial Advisory Services LLP and its related entities. The decision to include any company for mention or discussion in this newsletter is wholly unrelated to any audit or other services that Deloitte Corporate Finance LLC may provide or to any audit services or any services that any of its affiliates or related entities may provide to such company. No part of this newsletter may be copied or duplicated in any form by any means, or redistributed without the prior written consent of Deloitte Corporate Finance LLC.

About Deloitte

Deloitte Corporate Finance LLC, an SEC registered broker-dealer and member of FINRA and SIPC, is an indirect wholly-owned subsidiary of Deloitte Financial Advisory Services LLP and affiliate of Deloitte Transactions and Business Analytics LLP. Investment banking products and services within the United States are offered exclusively through Deloitte Corporate Finance LLC. For more information, visit www.investmentbanking.deloitte.com. Please see www.deloitte.com/us/about for a detailed description of our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2018 Deloitte Development LLC. All rights reserved.


http://www.finra.org/

http://www.sipc.org/

http://www.deloitte.com/us/about

Documents

Business Services Quarterly Update - Deloitte …...59.2% stake in Havas (“Havas”) held by the Bolloré Group (“Balloré”), at a price of €9.25 ($11.34) per share. In accordance